AT&T Drops, Drags Down Telcos, After Solly Downgrade - TheStreet

AT&T

(T) - Get Report

was down 6.5% in midafternoon after touching a new low of $26.94, depressing other telecom stocks.

Salomon Smith Barney

downgraded Ma Bell to outperform from buy and sliced its price target to $37 from $65. The

Telecom

index was down 2.9%.

WorldCom

(WCOM)

and

Sprint

(FON)

were also trading near their 52-week lows. Equipment makers were down as well.

Lucent

(LU)

was down 0.5%, and

Nortel

(NT)

was down 4.9%.